Hydrocolloids Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Hydrocolloids Market is segmented by Source (Natural and Synthetic), Type (Gelatin, Carrageenan, Pectin, Xanthan Gum, Guar Gum, and Other Types), Function (Thickener, Stabilizer, Coating Agent, Fat Replacer, and Gelling Agent), Application (Bakery and Confectionary, Meat and Poultry Products, Beverages, Sauces and Dressings, Dairy Products, and Other Applications), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers market size and forecasts for Hydrocolloids in revenue (USD million) for all the above segments.

Market Snapshot

Hydrocolloids Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: North America
Largest Market: North America
CAGR: >6 %
Hydrocolloids Market Top Companies

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Market Overview

The Global Hydrocolloids Market is projected to register a CAGR of over 6% during the forecast period (2021-2026).

Plants that process meat has become a hotspot for COVID-19 infections, bringing attention to the health and safety of traditional meat and resulted in a decrease in meat consumption. During 2020, the CDC (Centers for Disease Control and Prevention) had received data on COVID-19 cases from 19 of the 23 states that had reported at least one case related to this industry; there were 115 meat or poultry processing facilities with COVID-19 cases, with 4,913 workers diagnosed. This resulted in a decrease in demand and consumption of Gelatin and other hydrocolloids in the meat industry. The sales of bakery products were above average, even though the supply of bakery was insufficient, as many bakeries had to close due to labor shortages. Additionally, the disruption in logistics facilities and scarcity of raw materials as a result of the lockdown has caused additional issues in the market. Owing to all these factors the hydrocolloids market is negatively impacted by COVID-19. However, after taking back the lockdown regulations by governments bakery products are increasing in demand.

  • Over the medium term, the major factors driving the market studied are the growing demand for hydrocolloids in the food and beverage industry and increased R&D and innovations in hydrocolloids.
  • On the flipside, unfavorable conditions arising due to the COVID-19 outbreak and adherence to international quality and standards are the major restraints hindering the growth of the market.
  • The North American region dominated the market across the world, with the largest consumption from countries, such as the United States and Canada.

Scope of the Report

The hydrocolloids market is segmented by source, function, application, and geography. By source, the market is segmented into natural and synthetic. By type, the market is segmented into gelatin, carrageenan, pectin, xanthan gum, guar gum, and other types. By function, the market is segmented into thickener, stabilizer, coating agent, fat replacer, and gelling agent. By application, the market is segmented into bakery and confectionary, meat and poultry products, beverages, sauces and dressings, dairy products, and other applications. The report also covers the market size and forecasts for the hydrocolloids market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD Million).

Source
Natural
Synthetic
Type
Gelatin
Carrageenan
Pectin
Xanthum Gum
Guar Gum
Other Types
Function
Thickener
Stablizer
Coating Agent
Fat Replacer
Gelling Agent
Application
Bakery and Confectionary
Meat and Poultry Products
Beverages
Sauces and Dressings
Dairy Products
Other Applications
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Increasing Demand from the Gelatin Segment

  • Gelatin is a natural ingredient and does not need any chemical modification. It is widely used in health supplements due to its high natural protein content and amino acids.
  • Gelatin is extracted from animals, like cows, pigs, and fish, and it has major applications in the confectionary sector for imparting texture.
  • Gelatin is used as a gelling agent in emulsifiers. Furthermore, it also finds application as stabilizers in food products, like candies, desserts, marshmallows, and ice creams.
  • It is also used in meat products for water binding. According to Food and Agriculture Organisation, the Asia region has around 136.06 million metric tons of meat produced in the year 2019. Also, it is predicted that the growth in consumption of meat will increase to 12% by 2029 around the world thus increasing the demand for gelatin.
  • Gelatin also finds applications in instant sauces and soups and jelly products for fat reduction, creaminess, mouthfeel, and intense taste experience.
  • The revenue of the global bread and bakery products segment is estimated to be USD 487,108 million in 2020, and it is further expected to register a CAGR of over 3%, which would increase the demand for gelatin, and consequently hydrocolloids, and it is likely to propel its market during the forecast period.
  • Owing to the aforementioned factors, the hydrocolloids market is expected to grow rapidly over the forecast period.
Hydrocolloids Market Segmentation Trends

North America Region to Dominate the Market

  • The North American region is expected to dominate the market for hydrocolloids during the forecast period. In countries, like the United States and Canada, owing to the presence of a major market for confectionery, bakery, convenience food, and packaged food products, the demand for hydrocolloids has been increasing in the region.
  • The rising demand for convenience and functional food is expected to stimulate the demand for hydrocolloids. The function of the hydrocolloids as stabilizers in the bakery industry is expected to drive the demand for food hydrocolloids during the forecast period.
  • In the United States, the increased awareness among consumers about healthy food and eating habits propelled the demand for low-fat and low-calorie food, which helped the hydrocolloids market in the region to grow at a brisk pace.
  • The increasing commonness of obesity and cardiac diseases in the region boosted the demand for calorie-free, cholesterol-free, chemical-free, and natural food ingredients, like hydrocolloids, among consumers, which is projected to drive the market for hydrocolloids during the forecast period.
  • Technological advancements and new product launches have made hydrocolloids available for a wide range of applications in the food and beverage industry. The North American food hydrocolloids market is expected to register a CAGR of above 5% during the forecast period.
  • Additionally, the growth in the confectionary industry in the United States is projected to further drive the hydrocolloids market during the forecast period. Revenue from the confectionary segment in 2020 is estimated to be USD 76,594 million, and it is further projected to register a CAGR of around 2% during the forecast period. Furthermore, the Baking industry in the United States has had an economic impact of about USD 154.2 billion direct impacts on the economy as of 2020, according to American Bakers Association.
  • Some of the major companies dominating the region are Ashland, CP Kelco U.S. Inc., and Cargill Incorporated.
  • The aforementioned factors, coupled with government support, are contributing to the increasing demand for hydrocolloids in the region during the forecast period.
Hydrocolloids Market Growth Rate By Region

Competitive Landscape

The hydrocolloids market is fragmented with top players accounting for a marginal share of the market. Major companies in the market include DuPont, Cargill, Incorporated, CP Kelco U.S., Inc., DSM, and Ashland.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Growing Demand in the Food and Beverage Industry

      2. 4.1.2 Increased R&D and Innovations in Hydrocolloids

    2. 4.2 Restraints

      1. 4.2.1 Adherence to International Quality Standards and Regulations

      2. 4.2.2 Unfavorable Conditions Arising Due to the COVID-19 Outbreak

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Source

      1. 5.1.1 Natural

      2. 5.1.2 Synthetic

    2. 5.2 Type

      1. 5.2.1 Gelatin

      2. 5.2.2 Carrageenan

      3. 5.2.3 Pectin

      4. 5.2.4 Xanthum Gum

      5. 5.2.5 Guar Gum

      6. 5.2.6 Other Types

    3. 5.3 Function

      1. 5.3.1 Thickener

      2. 5.3.2 Stablizer

      3. 5.3.3 Coating Agent

      4. 5.3.4 Fat Replacer

      5. 5.3.5 Gelling Agent

    4. 5.4 Application

      1. 5.4.1 Bakery and Confectionary

      2. 5.4.2 Meat and Poultry Products

      3. 5.4.3 Beverages

      4. 5.4.4 Sauces and Dressings

      5. 5.4.5 Dairy Products

      6. 5.4.6 Other Applications

    5. 5.5 Geography

      1. 5.5.1 Asia-Pacific

        1. 5.5.1.1 China

        2. 5.5.1.2 India

        3. 5.5.1.3 Japan

        4. 5.5.1.4 South Korea

        5. 5.5.1.5 Rest of Asia-Pacific

      2. 5.5.2 North America

        1. 5.5.2.1 United States

        2. 5.5.2.2 Canada

        3. 5.5.2.3 Mexico

      3. 5.5.3 Europe

        1. 5.5.3.1 Germany

        2. 5.5.3.2 United Kingdom

        3. 5.5.3.3 Italy

        4. 5.5.3.4 France

        5. 5.5.3.5 Rest of Europe

      4. 5.5.4 South America

        1. 5.5.4.1 Brazil

        2. 5.5.4.2 Argentina

        3. 5.5.4.3 Rest of South America

      5. 5.5.5 Middle-East and Africa

        1. 5.5.5.1 Saudi Arabia

        2. 5.5.5.2 South Africa

        3. 5.5.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%)**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 ADM

      2. 6.4.2 AGARMEX, S.A. DE C.V.

      3. 6.4.3 Ashland

      4. 6.4.4 B. Braun Melsungen AG

      5. 6.4.5 Cargill, Incorporated

      6. 6.4.6 CP Kelco U.S., Inc.

      7. 6.4.7 Dupont

      8. 6.4.8 DSM

      9. 6.4.9 Ingredion Incorporated

      10. 6.4.10 J.F. Hydrocolloids, Inc.

      11. 6.4.11 NOREVO

      12. 6.4.12 Tate & Lyle

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Increasing Demand for Processed and Convenience Food Products

    2. 7.2 Other Opportunities

**Subject to Availability

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Frequently Asked Questions

The Hydrocolloids Market market is studied from 2016 - 2026.

The Hydrocolloids Market is growing at a CAGR of >6% over the next 5 years.

North America is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

DuPont, Cargill, Incorporated, CP Kelco U.S., Inc., DSM, Ashland are the major companies operating in Hydrocolloids Market.

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